California Labor Burden Calculator

Find the fully burdened labor rate in California, pre-filled with local SUI and tax estimates.

Pre-filled with California estimates: SUI 3.4%, state income tax ~6.0%. Edit any field below.

Social Security + Medicare (7.65%)

Federal unemployment (effective 0.6%)

Health, retirement, etc.

$37.55/hr

Fully burdened rate

25.1%

Burden added

$78,094

Annual cost

Burden breakdown

Employer FICA (Social Security + Medicare)7.7% · $2.30/hr
Federal Unemployment (FUTA)0.6% · $0.18/hr
State Unemployment (SUI)3.4% · $1.02/hr
Workers' Compensation1.5% · $0.45/hr
Benefits (health, retirement)8.0% · $2.40/hr
Overhead (PTO, equipment, admin)4.0% · $1.20/hr
Total burden25.1% · $7.55/hr

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Estimates only, using editable 2025 US defaults. Tax and insurance rates vary by employer, classification, and locality — verify with a licensed accountant before relying on these figures.

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Calculating the fully burdened labor rate in California starts with federal payroll taxes and adds the state-specific pieces. High, progressive income tax; SUI new-employer rate is 3.4% on a low wage base. This calculator pre-fills California's estimated new-employer SUI rate of 3.4% on a $7,000 wage base, then lets you layer in workers compensation, benefits, and overhead.

The result is the true hourly and annual cost of an employee in California — the number you need before setting a bill rate or comparing a W2 hire against a 1099 contractor.

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California Labor Burden FAQ

What is the labor burden rate in California?
In California, the employer labor burden combines federal taxes (FICA 7.65%, FUTA 0.6%) with the state unemployment (SUI) rate — estimated around 3.4% for new employers on a $7,000 wage base — plus workers compensation, benefits, and overhead. Most California employers land between 15% and 30% total burden. Every rate is editable in the calculator above.
How is the fully burdened rate calculated in California?
Add all employer costs as a percentage of the base wage, then multiply the pay rate by (1 + total burden). The calculator pre-fills California's SUI estimate and lets you adjust workers comp and benefits to match your business.
Does California have a state income tax?
Yes. California levies a state income tax (effective rate roughly 6.0% for a typical earner). Note that income tax is paid by the worker and does not affect the employer's labor burden — it matters for the 1099 vs W2 take-home comparison instead.
Are these numbers tax advice?
No. These are editable 2025 estimates. California SUI rates are experience-rated per employer and workers comp varies by class code — confirm with a licensed accountant.